Chicago CBD office vacancies increased in the first quarter of 2022 after holding steady at the end of 2021. Cresa reported an upswing to 20.2% from 18.1% the previous quarter, with all building classes showing increases in vacancy.
The negative absorption extended to the West Loop, at least in the Class B space. The Central Loop saw negative net absorption of 439,872 square feet, while the West Loop’s total was 279,513 square feet, counteracted by 421,695 square feet of positive net absorption in the submarket’s Class A buildings.
If 2022 “began ominously in terms of vacancy for the downtown Chicago market,” as Cresa put it, then the story was more upbeat when it came to office investment sales. There were several impressive building sales during Q1 2022, as sales volume reached $951 million of transactions, the highest amount since the second quarter of 2018, reported Cresa.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).